With time running out for Canada to finalize a trade agreement with the United States, numerous Canadian businesses are feeling anxious, anticipating a potential loss of up to half of their sales if the new tariffs are imposed. The impending round of U.S. tariffs, scheduled to come into effect on Wednesday unless a last-minute agreement is reached, would add another duty to $28 billion worth of Canadian goods, including electronics, dairy products, alcohol, and lumber.
Negotiations are intensifying as the deadline approaches. Canadian officials may meet with U.S. Trade Representative Jamieson Greer again before Prime Minister Mark Carney and U.S. President Donald Trump converse prior to the tariff deadline. The final decision on any deal rests with President Trump, according to America’s chief trade negotiator.
For certain Canadian businesses, the proposed tariffs would not only increase prices for American customers but also render cross-border shipping economically unfeasible. Todd Stafford, the president of Northern Cables based in Brockville, Ontario, expressed concerns as his company heavily relies on U.S. buyers for half of its sales. The company’s operations, which involve manufacturing copper and aluminum power cables for commercial and industrial purposes, could be severely impacted by the potential tariffs.
The looming new U.S. tariffs could have a significant detrimental effect on various Canadian industries, prompting fears among Canadian negotiators. The U.S. is demanding an end to provincial bans on U.S. alcohol, a demand that provinces are unwilling to meet. Moreover, Canada’s efforts to secure greater tariff relief on essential sectors like lumber have hit a standstill.
If the new tariffs take effect, Stafford fears that his company, which has 320 employees in Brockville and has avoided layoffs for 26 years, could face significant challenges. The tariffs could exacerbate existing issues such as a slowdown in condo construction and increased competition from cheaper Chinese products.
U.S. President Donald Trump has targeted key sectors of Canada’s economy with tariffs since 2025, but the majority of cross-border trade remains unaffected by the Canada-U.S.-Mexico Agreement (CUSMA) signed in 2020. However, the upcoming tariffs would impact approximately five percent of the total trade between Canada and the U.S., affecting a wide range of Canadian exports, including hockey sticks, select flowers, and antiques. Energy, potash, and critical minerals are among the exempted goods.
Businesses are already feeling the pinch from the tariff threat, with reports of layoffs and decreased orders. Despite potential impacts on businesses, some have adapted their operations to mitigate risks associated with the tariffs. The uncertainty surrounding the tariffs has led to preemptive actions by businesses, including increased shipping to beat deadlines and concerns about surplus goods affecting market prices. Local businesses are exploring strategies to weather the potential repercussions of the tariffs, aiming to maintain stability amid the uncertain trade landscape.
